The law firm of Ivanhoe and Kingbird relies heavily on a colour laser printer to process its paperwork. Recently the printer has not functioned well and print jobs were not being processed. A major overhaul costing $12,900 would make the current printer work properly for the balance of its useful life. Management is considering updating the printer with a faster model. Current Printer New Model Original purchase cost $31,000 $25,300 Accumulated depreciation 18,800 Estimated operating costs (annual) 3,000 1,900 Useful life 4 years 4 years If sold now, the current printer would have a salvage value of $4,100. If operated for the remainder of its useful life, the current printer would have zero salvage value. The new printer is expected to have zero salvage value after 4 years. Prepare an analysis to show whether the company should retain or replace the printer. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Period of 4 years Variable costs $ Major overhaul Salvage value New machine cost $ Keep Printer The company should the printer. $ Replace Printer Net Income Increase (Decrease) $ $ $